We have mostly small green arrows around the world, adding on to yesterday’s potent gains.
The North Korea situation has settled down a bit and the word is responding with a “risk on” trade after markets got oversold.
In Europe, the DAX and CAC are +0.2% with the FTSE +0.3%.
In Asia, the Nikkei is +1.1%, the Hang Seng is -0.3%, and the Shanghai is +0.4%.
SPX futures up are 4 handles after yesterday’s gap and go. The 2462-2464 area was taken back and there was pretty decent action in the leaders and tech. Today, see if we hold above 2468 or fade down a bit. Next resistance is 2474. A close above this will make shorts uncomfortable.
SPY had a big gap and go, clearing $246.40 and giving us $245.55 as a new point of reference to be long against. See if it holds $246.79 (yesterday’s high) or fades a bit. I think a fade would be better, because if we open up and rally all day, there could be another pain-type trade. Next resistance is $247.35.
QQQ showed relative strength on Friday and then exhibited some power yesterday. Our new pivot support is $143.19. It took back the 8/21 day and now we’ll see if it leads again. Yesterday’s high is $144.15. See if it stays above that or fades down a bit. Next resistance is $144.95.
Small caps finally relieved some of the oversold condition with IWM hitting a high of $138.59. It’s a bit above that this morning. Next resistance is $140.10 Yesterday was the day to buy it, but it could stretch a bit more so be careful fading it.
Biotech didn’t lead but it participated. IBB hit targeted resistance at $310 and could see $312-$314, where some traders could trim longs or test shorts.
Banks rallied on more deregulation talk but they were pretty in-line overall. Most names hit the resistance areas we listed yesterday.
XLF’s high from yesterday is $25.14. I’d trim or sell this open. Next resistance is $24.40.
JPM bounced well like most names. It hit $92.90. There’s not much to do here today.
BAC hit resistance targets. It’s probably not a day to start a fresh position. $24.49 is yesterday’s high.
GS hit a high of $229.83 yesterday and some faded it. I think we can probably fade the open here for a cute green-to-red trade using that pivot. High-beta tech provided all different types of opportunities yesterday and the setups are all very specific.
AAPL showed relative strength Friday and gapped up and closed well yesterday. We got back involved yesterday. We can stay long vs. $158.50 and trade around it by trimming some and holding some. It can be the first candidate to make new highs. Its all-time high is $61.83. Today, see if it holds the $160 area. There’s talk about a standalone Watch coming in September.
TSLA held in very well above the 8 day last week. Yesterday it gapped up but didn’t do much. We can be long vs. $353. Yesterday’s pivot low is $362, which we can use for tiering. The next opportunity to add could be on a high-volume break above $370.
FB held the 21 day and is building a big upper flag. If you didn’t buy Friday or Monday, it could be hard to buy this up open. There could be a cute green to red trade, but the real money is long. Resistance is $173, then $175.49.
NVDA filled its post-earnings gap with force as it cleared $159 and hit a high of $168.55. It’s up small. Maybe we get a cute short today vs. 5-15-30 minute high. But it seems like bigger money will be long for a move to new all-time highs.
AMZN did a Red Dog Reversal around the $954 pivot last Friday and had some follow-through yesterday, hitting a high of $985.50. The 50 day near $995 is next resistance.
NFLX has absorbed the Disney news and a negative Barron’s article, holding $167.60. Now see if it can clear $172.50. Resistance is above at $175.
GOOGL found support around $920 and seems okay. There is room up to $960. Yesterday’s high is $941.
BABA has been consolidating above $150 since early July. It has earnings Thursday morning. The major pivot area to clear will be $160. I might buy some calls today.
YY announced earnings and a secondary. See how it responds. The morning low was $75.50. The 21 day is $72.50.
JD had a big run and didn’t get enough out of the report to keep it going. It held the 50 day though. See if that continues above $42.24.
BZUN has a nice upper channel. A strong volume move above $34.25 can get it moving to all-time highs at $34.98.
X is not special but it’s above the 50 day. It needs a Trump/infrastructure catalyst to clear $24.30.
SNAP had a nice red to green trade with a Red Dog Reversal around the $11.77 pivot. It hit a high of $13.14. Real resistance comes in at $13.80.
FSLR still acts well. In time, it can clear $50 but it’s better to buy at the 21 day.
MDXG has a nice upper channel. This could be good for new highs above $16.
VEEV is a bit choppy but holding higher. It’s in the game to clear $66 but will most likely need earnings or another catalyst.
GPRO protected its gap and might see another move. We can be long vs. $9.60 or look for high volume above $10.40.
ZYNE got hit hard again yesterday morning but reversed up. Maybe we can go out 3 months and buy calls or just day trade it here and there. Yesterday’s low is $5.42.
CSCO has an interesting lower-level channel. Perhaps it pushes into it with a close above $32.
Metals and miners were off early yesterday as the market bounced but didn’t fall apart. They are down again. GLD is below yesterday’s low of $121.68. Next support is the 8 day at $120.95.
Today’s Trading Focus
I trimmed a little AAPL above $160.55 but will hold some as I think it makes new highs. I am sitting in TSLA. It might play with it around the $362.50 pivot but I think it takes out $367.70, then $370 which would be a time to add.
Feels hard to chase longs here, but shorting could be tricky. I took SPY short on the close as a hedge. I added a little around $247.15 and will add only higher to try and trade out of it.
AMZN and GOOGL have room to move, but it’s hard to enter on the third day up.
Positions Disclosure: Scott J. Redler is long AAPL, TSLA, SPY puts; is short SPY
Today’s Trading Calendar
Global Economic Calendar
12:30am JPY Revised Industrial Production m/m Exp., 1.60% Prior, 1.60%
2:00am EUR German Prelim GDP q/q Exp., 0.70% Prior, 0.60%
All Day EUR French Bank Holiday
All Day EUR Italian Bank Holiday
3:15am CHF PPI m/m Exp., 0.00% Prior, -0.10%
4:30am GBP CPI y/y Exp., 2.70% Prior, 2.60%
4:30am GBP PPI Input m/m Exp., 0.40% Prior, -0.40%
4:30am GBP RPI y/y Exp., 3.50% Prior, 3.50%
4:30am GBP Core CPI y/y Exp., 2.50% Prior, 2.40%
4:30am GBP HPI y/y Exp., 4.30% Prior, 4.70%
4:30am GBP PPI Output m/m Exp., 0.00% Prior, 0.00%
8:30am USD Core Retail Sales m/m Exp., 0.30% Prior, -0.20%
8:30am USD Retail Sales m/m Exp., 0.40% Prior, -0.20%
8:30am USD Empire State Manufacturing Index Exp., 10.2 Prior, 9.8
8:30am USD Import Prices m/m Exp., 0.10% Prior, -0.20%
9:30am GBP CB Leading Index m/m Prior, -0.10%
10:00am USD Business Inventories m/m Exp., 0.40% Prior, 0.30%
10:00am USD NAHB Housing Market Index Exp., 64 Prior, 64
Tentative NZD GDT Price Index Prior, -1.60%
4:00pm USD TIC Long-Term Purchases Exp., 28.3B Prior, 91.9B
8:30pm AUD MI Leading Index m/m Prior, -0.10%
9:30pm AUD Wage Price Index q/q Exp., 0.50% Prior, 0.50%
16th-18th CNY Foreign Direct Investment ytd/y Prior, -0.10%
Before Open: AAP, COH, DKS, HD
After Close: A, URBN,